TIS Petroleum (Asia) Pte Ltd, in collaboration with the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), has officially signed a Production Sharing Contract (PSC) for the Perkasa working area on Tuesday, November 25. This pivotal agreement marks a significant step forward in Indonesia’s upstream oil and gas sector.
The Ministry of Energy and Mineral Resources (ESDM) had previously designated TIS Petroleum as the successful bidder for the Perkasa Oil and Gas Working Area (WK) auction last September. This decision followed the rigorous 2025 Phase I Oil and Gas Working Area Direct Offer Auction, showcasing a competitive process to attract capable investors.
“This agreement encompasses a substantial signing bonus of US$300,000 (Rp 4.93 billion) and a total firm commitment of US$2.25 million (Rp 37 billion),” stated Vice Minister of ESDM, Yuliot Tanjung, during the Grand Launching Indonesia’s Oil and Gas Exploration 2025 on Tuesday, November 25. He emphasized that these financial commitments underscore the robust dedication of investors to support the development and enhance oil and gas production within this crucial working area.
The Perkasa WK is strategically located offshore East Java, boasting estimated reserves of approximately 228 million barrels of oil (MMBO) or 1.3 trillion cubic feet of gas (TCF). The official designation of this area was formalized through the ESDM Minister’s Decree Number 87.K/MG.04/DJM/2025, dated September 3, 2025, paving the way for its exploration and development.
Chairman of the Oil and Gas Lifting Task Force, Nanang Abdul Manaf, further elaborated on the government’s proactive initiatives. He revealed that since October 2025, the Ministry of ESDM has been diligently preparing and broadening access to 75 potential oil and gas working areas for prospective investors. All these promising blocks are slated to be offered through formal auction processes, signaling a robust and transparent investment environment.
Looking ahead, Nanang highlighted an ambitious plan to significantly increase the pace of block offerings. “In 2024, the offering of oil and gas blocks was limited to around 10 WKs per year, but starting from 2025, this figure will be elevated to 20 blocks per year or even more,” Nanang announced at the same event. This expansion aims to accelerate exploration and unlock Indonesia’s vast hydrocarbon potential.
Out of the 20 blocks planned for tender this year, the government has already successfully offered 12 oil and gas blocks through the first and second phase auctions. This demonstrates the swift progress in implementing the enhanced strategy. Nanang concluded, “While one WK was signed today, the remaining 8 WKs will be offered in the third phase auction, in accordance with the ESDM Minister’s approval,” underscoring the ongoing efforts to attract further investment into Indonesia’s dynamic energy landscape.
Summary
TIS Petroleum (Asia) Pte Ltd and SKK Migas officially signed a Production Sharing Contract (PSC) for the Perkasa working area on November 25. TIS Petroleum secured the contract as the successful bidder in the 2025 Phase I auction. This agreement includes a US$300,000 signing bonus and a firm commitment of US$2.25 million, highlighting investor dedication. The Perkasa WK, located offshore East Java, holds estimated reserves of 228 million barrels of oil or 1.3 trillion cubic feet of gas.
The Ministry of ESDM is proactively expanding investment opportunities, preparing 75 potential oil and gas working areas for future offerings. Starting in 2025, the government plans to significantly increase block offerings from around 10 to 20 or more blocks per year to accelerate exploration. Of the 20 blocks planned for this year, 12 have already been offered, with the remaining 8 WKs slated for a third phase auction.
